Responsibilities The Oil and Gas Investment Board is charged with overseeing the investments of the City Oil and Gas Trust Fund. The Oil and Gas Trust Fund was established to accumulate the principal generated from oil and gas royalties received from City-owned mineral rights. Charter Section 2-1(B) protects the principal and royalties of this fund from being spent without a vote of the people.
Investing the assets of this fund is handled by the Oil and Gas Investment Board, appointed by City Council. The Board consists of five members, including the Mayor and Finance Director. In the summer of 2008, the City’s legislative initiative to allow the Oil and Gas Trust Fund to be invested like a public pension fund, instead of under the more restrictive PA 20 regulations, was successful. Public Act 220 of 2008 was enacted into law on July 16, 2008. In order to take advantage of the new law, the Oil and Gas Board went thru a rigorous selection process to hire an investment advisor. Bartlett & Co. was chosen in January of 2009 and they began investing the funds in March.
Well production and royalty income have fluctuated over the past ten years because oil and gas production volumes have varied and the price of oil and gas has moved up and down considerably. The lifespan of the oil and gas wells is unknown. The Oil and Gas Investment Boards is established under Chapter 260 of the Codified Ordinances